IYG vs SPY
iShares US Financial Services ETF vs State Street SPDR S&P 500 ETF Trust
Which is better, IYG or SPY?
Large Cap Value against Large Cap Blend.
SPY has a lower expense ratio. IYG led over 3Y, SPY over 1Y, 5Y and the full window. SPY is less concentrated, with 38.0% of the fund in its ten largest positions against 63.0%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | IYG | SPY |
|---|---|---|
| Expense Ratio | 0.38% | 0.09%Best |
| AUM | $2.2B | $804.7B |
| Dividend Yield | 1.01% | 0.98% |
| Holdings | 104 | 505 |
| YTD Return | +3.93% | +11.52%Best |
| 1Y Return | +9.49% | +17.48%Best |
| 3Y Return (annualized) | +22.92%Best | +20.62% |
| 5Y Return (annualized) | +10.64% | +12.73%Best |
| Volatility (annualized) | 21.6% | 15.1%Best |
| Max Drawdown | -82.9% | -56.5%Best |
| $10,000 over 5 years | $16,579 | $18,205Best |
| Top 10 Weight | 63.0% | 38.0%Best |
| Fund Family | iShares by BlackRock (US) | State Street Investment Management |
| Category | Equity | Equity |
| Style | Large Cap Value | Large Cap Blend |
| Inception | Jun 12, 2000 | Jan 22, 1993 |
Volatility and max drawdown are measured over the window both funds cover: Jun 21, 2000 to Sep 10, 2026 (26.2 years).
IYG vs SPY growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 26.2 years both funds cover.
IYG vs SPY Performance
iShares US Financial Services ETF (IYG) is an ETF from iShares by BlackRock (US) and State Street SPDR S&P 500 ETF Trust (SPY) is an ETF from State Street Investment Management. Over the past year IYG returned +9.49% while SPY returned +17.48%. Year to date, IYG is up 3.93% versus a gain of 11.52% for SPY.
Over three years, IYG compounded at +22.92% per year against +20.62% for SPY; over five years the annualized figures are +10.64% and +12.73% respectively. Across the full 26-year window we track, SPY has the edge at +6.73% annualized vs +5.27%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
IYG has been the more volatile fund, with annualized monthly volatility of 21.6% compared with 15.1% for SPY. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -82.9% for IYG and -56.5% for SPY. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.82. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
IYG charges 0.38% per year while SPY charges 0.09%. On a $10,000 position that is $38 vs $9 annually, a gap of $29 per year that compounds over a long holding period. On income, IYG currently yields 1.01% against 0.98% for SPY.
Holdings Overlap
93.0% of IYG's money is in holdings SPY also owns. 10.3% of SPY's money is in holdings IYG also owns.
Most of IYG is already inside SPY. Owning both mostly buys the same companies twice.
46 positions in common, counted across the 100 positions we hold weights for in IYG and 504 in SPY, against full books of 104 and 505.
What only one of them owns
Our book lists 448 positions for SPY that do not appear in our book for IYG (89.2% of the fund), and 52 for IYG that do not appear in SPY (6.7%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in IYG | Weight in SPY | Difference |
|---|---|---|---|
| JPMJpmorgan Chase & Co. | 12.98% | 1.44% | 11.54% |
| BRK.BBerkshire Hathaway B | 12.85% | 1.42% | 11.43% |
| VVisa Inc | 8.31% | 0.92% | 7.39% |
| MAMastercard Inc | 6.25% | 0.69% | 5.56% |
| BACBank Of America Corp. | 5.57% | 0.62% | 4.95% |
| GSGoldman Sachs Group Inc. | 4.21% | 0.47% | 3.74% |
| WFCWells Fargo & Co. | 3.67% | 0.41% | 3.26% |
| MSMorgan Stanley | 3.53% | 0.39% | 3.14% |
| CCitigroup Inc. | 3.16% | 0.35% | 2.81% |
| AXPAmerican Express Co. | 2.50% | 0.28% | 2.22% |
93.0% of IYG is already inside SPY.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, IYG or SPY?
IYG has an expense ratio of 0.38% while SPY charges 0.09%. SPY is the cheaper option, by $29 a year on a $10,000 investment.
Which performed better, IYG or SPY?
Over the past year IYG returned +9.49% vs +17.48% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (26 years), IYG annualized +5.27% vs +6.73% for SPY. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, IYG or SPY?
IYG has been the more volatile fund at 21.6% annualized versus 15.1% for SPY. Worst drawdown: IYG -82.9% vs SPY -56.5%.
Should I hold both IYG and SPY?
IYG and SPY have a monthly-return correlation of 0.82, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between IYG and SPY?
93.0% of IYG's money is in holdings SPY also owns. 10.3% of SPY's is in holdings IYG also owns. They hold 46 positions in common, counted across the 100 positions we hold weights for in IYG and 504 in SPY.
Which pays a higher dividend, IYG or SPY?
IYG yields 1.01% while SPY yields 0.98%, so IYG currently pays the higher dividend yield.
Is SPY better than IYG?
SPY has a lower expense ratio. IYG led over 3Y, SPY over 1Y, 5Y and the full window. SPY is less concentrated, with 38.0% of the fund in its ten largest positions against 63.0%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.